So, you have decided that settling your credit card debts on your own is the better path instead of hiring a debt relief company for the purpose. Well, if you have the talents and abilities to rival those of the professionals especially in the areas of communication, negotiation and documentation, then go on right ahead.Not too long ago, a nurse with a little bit of groundwork in tax laws took on the IRS single-handedly then so can you in the case of debt relief.
There are certain things, however, that you must consider when settling credit card debts as a personal endeavor. These three tips will ensure that you are one step closer to successfully taking on those credit card companies.
You must ensure that your accounts are considerably delinquent
You can try to negotiate a lower principal amount on your credit card bills as soon as you feel that making the minimum monthly payment is not going to be possible or if you feel that the debts are not going to be paid due to other fiscal priorities/emergencies. Keep in mind, however, that the debt relief process cannot be availed of until and unless your credit card accounts are significantly delinquent.
Wondering how delinquent? Well, delinquent credit card accounts are written off as an accounting procedure once these have reached 180-plus days in the ageing method.The writeoff causes the account to drop in value significantly and third parties usually buy these for real cheap – sometimes around 4-6% of the original amount.
To prevent this from taking place, the credit card company will be eager to settle the debt through a negotiation process.If the creditors get half of what you owe, thats much better than the 5% they would’ve gotten from the third party collection agencies.
Maintain Detailed and Descriptive Documentation
The days of verbal agreements holding any value are long gone and especially when it comes to credit card debt settlement.It is your word against the word of the collection agency so there isn’t a clearcut winner in this scenario.
The other option is that you maintain excellent written records of all the matters related to the settlement and negotiation process with your creditors. Always send out letters with complete information to the proper addresses and addressees.After that, file the letters and other forms of communication in a binder that is easily accessible.
If you must make a conversation over the phone, keep descriptive records of it.Document the date, time, the names of the people you spoke with, the contact numbers and the details of the conversation.
Make It Certified Mail
When you have reached a settlement, always send your payment through certified mail. Send the check together with a memo saying that said check is for full payment, if indeed it is, along with a copy of the agreed settlement.Now, you will have pretty good documentation.
Dont forget the specific strategies that you need to use to settle the debt by yourself. Just remember these three tips and you should be alright during the entire process.
These are some specific steps that you can take. For more information on how to clean up your credit report you should read our articles about getting the best credit card debt relief help
